A dispute between two FTX entities is spotlighting the problems of a cryptocurrency industry that has companies in multiple countries and no overall regulation.
has become an international dispute, highlighting complications when an industry operates globally with little or no regulation.
A bankruptcy court in Delaware is scheduled to address the issue Tuesday. U.S.-based FTX Trading wants the court to consolidate a provisional liquidation proceeding in the Bahamas into the U.S. case., challenging the validity of the U.S.-based entity’s Chapter 11 bankruptcy filing. Provisional liquidators are appointed when it appears likely a company will not be able to pay its debts and needs to settle up with creditors.
"FTX.com jurisdiction shopped and chose arguably one of the least restrictive regulatory regimes and this choice certainly was a major factor in the events that have unfolded over the past week or so," he said.
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